National Republican., 1887-11-02
Suspension OF Bond Purchases and
Contraction.


York.
Suspension OF Bond Purchases and
Contraction.
In May last the NATIONAL REPUBLICAN,,
after careful survey OF the situation, and
an exhaustive examination In the fnan.
cial condition OF the country, said that there
was danger OF financial crisis, because Of
the continued contraction Of the currency,
and II then warned the administration OF
the necessity that existed for providing
against this danger.
Recognizing, as 1t did, from the public
utterances both OF President Cleveland and
OF his most trusted adviser, the late Secre-
tary OF the Treasury, "Dan" Manning, that
the administration was pledged to the
policy OF monometallism, and contraction,
the NATIONAL REPUBLICAN sought to i'm
press upon the administration the necessity
Of q departure from these ideas, for the
benefit Of the country, that the people
might be saved from disaster and great
loss.
In pursuance of this plan the NATIONAL
REPUBLICAN suggested various methods by
which the immense surplus In the treas
ury could be legally disbursed, and the
money that was flowing into 1t at the rate
Of $4,000, GOO per month in excess Of the
expenditures could be returned into the
channels Of trade.
1t suggested that under the law OF 1860
bonds could be called and paid, aud cited the
action Of Secretary Window as precedent.
1t insisted that the sinking fund law made
the redemption at par of all bonds needed
for the sinking fund part Of the contract
upon which the bonds were issued.
All this was done in nun.partisan spirit.
The NATIONAL REPUBLICAN sought the
good Of the country and the people, for it
saw the danger that threatened.
Despite everything that could be said,
Secretary Fairchild refused to do anything
that looked toward expansion, or that would
IL any way reduce the enormous accumula-
tlon Of money In the treasury, which was
sappiug The life blood from commerce.
The law required "the purchase or pay
mentn OF a certain amount OF bonds each
year for the sinking fund. The ablest law
ytrs Of the country hold that those words DO
not authorize the payment of any premium
on the bonds needed for this fund, but Secre-
tary Faircrili, dlsregsrdlng the plain IN can.
ing of the law, proceeded to purchase
bonds at premiums ranging from 81 to 25
per cent. instead of making payment Of
the amount required by law at the par
value.
Tie NATIONAL REPUBLICAN protested
against any such measure in the very
strongest language, not only as q violation
Of law, but as inadequate to afford the
retded relief.
Once more, on the l4th Of September,
we called on the administration, tor prior
TO that time President Cleveland had ex-
pressed himself as fully in accord with the
bond.purchasing plan OF Secretary Fair
child, and after again showing the condi-
tion Of the country aud the needs OF the
people, said
THO NATIONAL REPUBLICAN therefore recon
mends in the interest OF all the people thai
the President instruct the Secretary Of the
Treasury to receive United States bonds on dc
post as security, lOaning an amount not ex-
ceeding the par value OF the bonds so deposited
at interest At the rate Of two per cent. per AN
nun.
On the 18th we reiterated this advice
and said of it:
The plan proposed by the NATIONAL REruB
LlCAN is the only safe and feasible method In
the absence of legislation. The bonds of the
United states are held in every section, and
the plan proposed Ggtrs on igdUccmeR IN IN
Hoidrs 10 0yC Hsm 10 ytiierG Tie money pressure
II is plain, simple, Of easy accomplishment
and would put at least 500, 900, 900 in circulu
tlon within sixty days after it, announcement.
And the money would he distributed from
Portland, Me-, to Portland, Greg
Read this plan and observe It's advantages
First, there is perfect safety to the govern
ment, tcCause not more than the par value o
the bonds IS TO be advsnced second ouo-hal
the interest Is saved OF all the bonds thu. dc
posted, as per cent. Is charged for the money
loaned; third, the money market win be rem
Gcrcd easy and all danger Of financial crIsi
that win place the whole country IN the pnwpI
orthe Wall street spectators, who now holt
ali the currency the oountry, viii be ayertsd
anu fourth, an indUCement Is offered To tn,
holdels olthe bonds TO use them Money eau
be loaned freely at per cent. or moro on tn
best paper and the best securities IN The
county. The boudhUler who Invests in th!
way via he getting at least per cent. up3,
his money instead Of j. and the crisis bclnl
passed, whenever money becomes 80 abnnlau
that be canno. invest At good profit he car
return his money 10 the treasury aud rotakI
lis huHdy.
Still the administration pursued the lille
gal policy Of purchasing bonds at hlgl
premium, thus unlawfully increasing the
public debt and In no way. relieving the
necessities Of commerce.
But tic people spoke, Hundreds OF let.
tiers demonstrating against the policy OF
contraction and the purchase Of bonds were
received both Of the department aud the
white house. Several important state elec
tlors were approaching, aud the politician.
said HCJigthcr contraction qt money utcall
the contraction Of Democratic ryit5.
The bankers, after the conference with
the Secretary Of the Treasury In New York,
held their meeting at PIttsburg anl adyo.
Gated ttill further purchases Of bonds, unit
all were absorbed, aud the entire Issue OF
national bank notes thus wiped out--a con.
tiactiou Of SlGIOOOOO0.
Jne NATIONAL REPUBLICAN, exposed